Fed's Logan: Fed must ensure tariffs don't spark persistent inflation

Odaily News Fed's Logan said officials must ensure that any tariff-induced inflation does not become more persistent. She warned that after the latest round of inflation in the United States, Americans' expectations for future price increases may become fragile. "To sustainably achieve our dual mandate goals, it is important to prevent any tariff-related price increases from leading to more persistent inflation," Logan said. "At this time, I believe the stance of monetary policy is correct." "Whether the impact on inflation will be sustained will depend on how quickly businesses can get through the phase of rising costs and whether long-term inflation expectations can remain well stabilized," Logan said. She also said that persistent inflation, coupled with Americans' experience in the past few years, may prompt households and businesses to expect further price increases. "Historical experience tells us that when high inflation expectations are entrenched, the road to restoring price stability will be longer, the job market will be weaker, and the economic scars will be deeper." (Jinshi)